This story originally appeared in the San Francisco Chronicle but being in the hotel industry we never want to see this kind of thing happen to us so it is good to hear how some of our hospitality brethren handle times of distress. Here’s the article:
Here's a very interesting and heartfelt Q&A with Clarence Tan, CEO of IHG
I offer huge thanks to Mr Tan for taking to time, in the midst of Japan's crisis, to sit down and correspond via email with me (and the readers of this blog) about the situation.
Here goes:
Q: Have your hotels seen any normalization yet?
We operate 33 hotels across Japan, and we were extremely fortunate that none of our hotels sustained any serious damage. With the exception of
We have seen occupancy levels drop in the northern zone below the normal average. With the uncertainty of the developments at the Fukushima Power Plant and growing concerns relating to food contamination and safety, we are seeing the impact due to:
>Advisories on non-essential travel to Japan still in place
>Expatriate communities are heeding embassy advisories and leaving Japan
>Most multinational corporations have executed their business continuity plans and are either operating outside Tokyo or have temporarily relocated to other Asian offices
>Major airlines are also cutting back routes to Japan
In spite of the dip in occupancy, we are committed to staying open. We have activated crisis response and ensured contingency plans are in place at all levels according to our risk management procedures, but where possible we have kept the hotels running as normally as possible.
Clarence Tan, CEO, IHG
Q: What about areas well away from the northern zone....perhaps down south in Osaka and other cities?
Due to the effect of relocation and contingency plans for most companies, we are seeing for the short term strong occupancy levels in areas such as Osaka, Fukuoka and Kobe.
Q: Is there any proof that the entire country is not shut down and that business travel is actually still taking place?
International business travel is very slow. Locally, we are still seeing travel traffic -- there is a general sense of people outside the affected areas trying to get back to normal as well as a strong display of the Japanese 'Can Do' spirit.
From our observation, the Fukushima incident and the associated concerns such as radioactivity contamination need to be resolved. Once that happens and rebuilding commences, there's a good chance that travel advisories will be lifted. The positive impact of this will lend itself to the road to recovery of the travel and tourism business.
On the whole, the country isn't 'shut down' -- it's coping with this unprecedented crisis with dignity and efficiency, and as an international business with deep roots in Japan, we are committed to helping with the recovery efforts to the best of our ability.
Q: Do you have any other observations to share from your hotels there?
It's too early for us to assess the full impact to our business; our energies have been focused on the welfare of our guests and our employees.
Other than the obvious impact we're seeing in terms of cancellations and low occupancy levels, we think it will be a while before we see the return of large scale events such as weddings, conferences and incentive trips as the country rebuilds itself -- both from an emotional and physical perspective.
We need our neighbors and everyone to understand and believe that Japan is safe and things are well under control once the Fukushima issue is put to bed.
We remain cautiously optimistic however -- the appeal of Japan as a travel destination is not likely to waver. In fact the support for the nation is overwhelming. I believe the tourism sector has the right platform to instill consumer confidence and we should work together as a community in the recovery-building phase following this truly unfortunate situation.
From our perspective as hoteliers -- our main role in hospitality is to provide shelter and service, and despite all the challenges brought on by the quake, this hasn't changed. It's been absolutely humbling to see the manner with which the people of Japan have reacted to this crisis. The discipline and national pride I've witnessed will stand Japan well in the road to recovery.
If you've got friends for family in Japan, or are trying to decide when or if you should travel there yourself, be sure to read my current
No comments:
Post a Comment